Bank Reconciliation Quiz

A Bank Statement is sent every month by the bank to _____.

• Justify bank charges

• Inform him to collect his dividend

• Inform him of the different facilities offered by the bank

• Provide him with details of receipts and payments in his bank account

Which of the following items is not a reason for difference between bank balance as per cash book ?

• Credit sales

• Dishonoured cheques

• Cheques deposited but not yet credited

• Cheques issued but not yet presented for payment

Standing order payments _________.

• Reconcile the balance on the cash book and the bank statement

• Do not change the balance shown on the bank statement

• Increase the balance shown on the bank statement

• Decrease the bank balance as per bank statement

Who prepares the Bank Reconciliation Statement ?

• Bank manager

• The firm's accounts clerk

• Bank's clerk

• The customer's

Cheque drawn on the last day of month April will ________.

• Not appear in the Cash Book

• Be debited on the bank statement of month April

• Not appear on the bank statement balance of month April

• Be credited on the bank statement on the last day of April

A cash deposit made by the business appears in the Bank Statement as ________balance.

• Withdrawal

• Credit

• Debit

• Opening

Which of the following statements regarding a bank reconciliation statement are true ?

• It does not involve double entry.

• It is prepared by business to verify its bank balance.

• It is sent by bank when an error has been made in its record.

• It is sent by bank when its customer's account is overdrawn.

Which of the following transactions will decrease an overdraft with the bank?

• Bank commission

• Returned cheque

• Credit transfer

• Direct debit